The Dutch Cabinet plans to introduce a new withholding tax on dividend flows to tax havens from 2024. Withholding tax, payments to countries that levy little or no tax are taxed by the Netherlands and the flow through the Netherlands will also be prevented. The measure will apply to cash flows to countries with a profit tax rate of less than 9% and countries on the European list. Even if the Netherlands has a tax treaty with these countries. From 2021, a withholding tax on interest and royalties will apply. This is one of the measures that the Dutch government has taken in recent years to tackle tax avoidance. The effects of these measures are monitored where possible. This also showed that, contrary to what was previously estimated, there are still large dividend flows to countries with a too low tax rate.
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NAZALI TAX & LEGAL |